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[ Article ]
korean management review - Vol. 45, No. 6, pp. 1901-1928
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2016
Received 19 Jun 2016 Revised 21 Aug 2016 Accepted 01 Sep 2016
DOI: https://doi.org/10.17287/kmr.2016.45.6.1901
Pain of Gain: Seeking Variety for Loss Aversion in Unchosen Options
Jihye Park*
*College of Business at Hankuk University of Foreign Studies, First Author
선택은 곧 손실: 비 선택 대안의 손실을 줄이기 위한 연속적 복수 제품 선택의 다양성 추구
박지혜*
*(주저자) 한국외국어대학교 경영대학 교수 (jihyepark@hufs.ac.kr)
Funding Information ▼ Hankuk University of Foreign Studies

Traditional product bundles that are predesigned and packaged by marketers limit consumers to choose more varieties of products. Self-bundling however, allows consumers to choose a variety of multiple products given in a single category or across product categories in order to fulfill a required purchase quantity. Past research on variety seeking in the simultaneous choice context explains that consumers tend to choose more varieties in order to avoid the expected satiety or preference change in the near future. This study focuses on the appeal of the forgone to explain motivations of variety seeking and argues that more varieties are pursued as a loss-averse decision strategy. Therefore, the purpose of this study was to examine the effect of the amount of unchosen or remaining options on choice variety and explain underlying motivations of choice variety from the loss aversion perspective.

The first study examined if increasing the number of unchosen options leads consumers to choose more varieties in the simultaneous multiple choice condition. Consumers are likely to make following choices among remaining options rather than repeat prior choices, in order to reduce feelings of loss. To test this prediction, one factor (a number of remaining options: 6 vs. 3 vs. 0) between subjects design was employed. A total of 107 participants were asked to choose three, six, or nine donuts among nine popular varieties of donuts and received discounts. Results revealed that greater diversification bias occurred when the number of remaining options increased. When consumers choose three donuts than six or nine donuts from nine varieties of donuts, they tended to make a series of choices more from unchosen options and in turn, choose more varieties. As an assortment size exceeded the number of products to be chosen, people perceived greater loss from the amount of unchosen options and thus, made following choices focusing on remaining options, which altered the prior choices. Choice variety induced from loss aversion of unchosen options was confirmed

When consumers can select more quantity, they may perceive less loss from forgone options. The second study tested if a goal quantity moderates the effect of the number of remaining options on choice variety. A 2 (purchase goal quantity: small 3 vs. large 6) X 2 (the number of remaining options: 0 vs. two times greater than the goal quantity) between subjects design was employed. A total of 122 participants were asked to select three or six macarons from the given variety of a macaron choice set. Results revealed that individuals tended to seek more varieties, when they selected three macarons from the macaron choice set of six varieties than from that of three varieties. However, no significant difference of the number of remaining options in choice variety was found, when they chose six macarons. As individuals chose more products, they were less likely to be sensitive to the amount loss from unchosen options and tended to repeat prior choices to maximize chosen options.

Perceived amount of loss from unchosen options in the multiple choice context can be influenced not only by the number of unchosen options but also by the quality of unchosen options. To test if variety seeking is motivated to reduce the amount loss from unchosen options, a 2 (goal quantity: 4 vs. 6) X 3 (preference dominance in the remaining options: more dominant, balanced, less dominant) between subject design was employed. A total of 204 undergraduate students were asked to make a series of snack choices in the given choice set. Results revealed that when consumers made four choices, they tended to choose more varieties from dominant remaining options than balanced or less dominant remaining options. The effect of preference dominance of remaining options on choice variety was strengthened when consumers made six choices. As the amount of more preferred snacks increased in the choice set, consumers were more likely to choose from unchosen options.

Our results show that consumers tend to choose more varieties when a size of remaining options increases. Greater attractiveness of remaining options also leads consumers to choose more options from remaining options. Results of this study are applicable to the effective stock management by promoting choice variety and reducing the amount of less popular unsold items through managing and controlling the choice set size as well as dominance structure relative to the purchase goal quantity.

과거 선택 다양성의 연구들이 예상된 선호도의 변화나 포만감을 줄이기 위한 연속적 복수 제품 선택에 집중되어, 비 선택 대안에 대해 소비자들이 인식하는 상대적 손실이 연속적 복수 제품 선택의 다양성에 미치는 영향은 아직 연구된 바가 없다. 이에 본 연구에서는 선택 가능한 대안의 크기를 손실의 개념으로 접근하여, 선택 되지 않은 대안들로부터 인식되는 손실의 크기를 줄이기 위한 의사 결정으로의 선택 다양성을 살펴 보고자 하였다. 세 차례의 실험 결과, 목표 수량과 선택 대안 크기와의 차이가 클수록 비 선택 대안에 더 집중하여, 비 선택 대안으로부터 야기될 손실을 줄이기 위한 연속적 의사 결정을 하는 것으로 확인되었다. 또한 비 선택 대안에 대한 손실 인식은 선택할 수 있는 목표 수량이 증가할수록 감소한다는 것을 발견하였다. 마지막으로 비 선택 대안에 대한 손실 인식이 대안의 정량적 크기에서뿐 만이 아니라 대안의 정성적 구조 차이로 인해서도 야기되며 따라서, 비 선택 대안에 대한 손실을 줄이기 위해 다양한 선택을 하게 됨을 확인하였다. 본 연구는 선택 다양성의 기저를 예상된 포만감이나 선호도 변화로 설명한 기존 연구 결과를 확장하여 비 선택 대안에 대한 손실 회복으로 설명하였다는 데 학술적 의미가 있다. 또한, 골라 담기나 2+2와 같은 복수 구매 유도 전략을 설계함에 있어서 목표 구매 수량과 제시해야 하는 대안의 크기 및 구조를 설정하는 데 본 연구 결과의 실무적 활용이 가능하다.